Mothercare Ireland 'satisfied' with Irish turnaround
The directors of Mothercare Ireland say the business achieved a significant turnaround last year.
The directors made their statement after new accounts for Mothercare Ireland Ltd show that the company recorded pre-tax profits of €488,711 in the 12 months to the end of March 26 last.
Revenues for the 12 months declined by 12.5pc, going from €31.59m to €27.62m, following the closure of a number of stores in the prior year.
The profits were down sharply on the pre-tax profits of €1m in 2016. However, the profits in 2016 were due to an exceptional gain of €2.2m booked from the company securing write-downs on loans, discounts on balances due to creditors and rental agreements arising from the company's examinership process in 2015.
The firm exited an examinership in October 2015 that resulted in three stores being closed at Blackrock and Jervis Street in Dublin and Cruises Street in Limerick and significant rental reductions being achieved.
In the new accounts, the directors said without the one-off gain from the examinership process, it would have recorded a net loss. The directors said the significant turnaround in 2017 "is forecast to be sustained in the coming financial year".
Mothercare Ireland operates 15 stores and has stores in Cork, Dublin, Galway, Tralee, Newbridge, Portlaoise, Limerick, Drogheda, Dundalk, Sligo and Waterford.
The reduction in rents secured during the examinership is shown in the firm's rental bill for the 12 months to the end of March last year totalling €2.44m compared to €3.1m in 2016.
Mothercare Ireland was set up in 1992 by David Ward, who had previously run the BHS, Habitat and Mothercare businesses here. Accumulated profits at the firm totalled €2.3m.
The firm's cash pile decreased from €1.27m to €1.19m. Numbers employed reduced further, from 289 to 250, with staff costs falling from €5.1m to €5m.
The profit last year included other operating income of €287,151.
The profit also takes account of non-cash depreciation costs of €152,432.